1. RYBINSK: CITY OF RAPID CHANGES RYBINSK CITY ADMINISTRATION Rybinsk2011

2. CONTENTS 2 1. Rybinsk today 2. Strategic challenges and our vision 3. Projects accomplished 4. New initiatives and projects 5. Why Rybinsk is perfect fit for investment 6. Summary and discussion www.rybinsk.ru

3. LOCATION: Region of Yaroslavl, Central Federal District, Russia 3 River links systemAutomobile and railway system to Moscow – 360 km, to St.-Petersburg – 730 km Volga river: Water links to Moscow, St.-Petersburg, Petrozavodsk, Archangelsk, etc. RYBINSK St.-Petersburg Moscow RYBINSK YAROSLAVL to St.-Petersburg MOSCOW to Baltic Sea to White Sea to Caspian and Black Sea

4. www.rybinsk.ru RYBINSK: BASIC FIGURES 4 City of Rybinsk is located in Central European part of Russia City territory - 10142 hectares Distance (automobile, railway) to Moscow – 360 km, to St.-Petersburg – 730 km Rybinsk is located on the banks of Rybinsk water reservoir (area 3 800 sq. km) Population – 200 300 (01.01.2011). Economically active population – 121 000 (01.01.2011) Average salary – 16 400 RUR (400 EUR/month) (01.08.2011). Unemployment – 1,9% (01.08.2011).

5. www.rybinsk.ru ECONOMIC FIGURES 5 2010: Total number of companies – 4633 Industrial base companies – 56 - total output volume (industrial goods, energy production) 32,6 billion RUR (776 mln EUR) - total sales volume in SME segment 9,6 billion RUR (228 mln EUR) - retail trade turnover 11,7 billion RUR (278 mln EUR) 2011/2010 expected gains 2011/2010 expected gains of basic figures: of basic figures:

6. www.rybinsk.ru RYBINSK INDUSTRIAL BASE jet engines, gas-turbine power-plants and equipment (domestic and international) jet engines, gas-turbine power-plants and equipment (domestic and international) shipbuilding (domestic and international) shipbuilding (domestic and international) cables and wires (domestic and international) cables and wires (domestic and international) special equipment: unmanned aerial systems, datalink systems, radars, special control and measurement equipment special equipment: unmanned aerial systems, datalink systems, radars, special control and measurement equipment printing machines and equipment printing machines and equipment road construction vehicles and equipment road construction vehicles and equipment motor vehicles, ATV and equipment motor vehicles, ATV and equipment common industrial and special ball valves common industrial and special ball valves IT and nanotech IT and nanotech 6

7. www.rybinsk.ru EMPLOYEES: HIGHER AND PROFESSIONAL EDUCATION High education level of secondary schools graduates Higher education system (7400 students, 100 specialties, four-level education system): - Rybinsk State University of Aviation Technologies Subsidiaries and branches of universities: - International University of Business and New Technologies, - Yaroslavl State Pedagogic University, - Modern Humanitarian Academy, - Moscow State Academy of Sailing Transport. Corporate industrial training centers (Scientific-Production Association «Saturn», Rybinsk University) State professional (vocational) schools (6500 students): - 8 primary education, - 5 advanced professional education 7

8. www.rybinsk.ru STRATEGIC CHALLENGES SAME PROBLEMS AS IN OTHER CITIES - Population decreasing - Technologies becoming outdated - Traditional industries decreasing production - Infrastructure wearing out 8

9. www.rybinsk.ru STRATEGIC VISION «RYBINSK-2015» GOALS Rybinsk - industrial center of Yaroslavl region - center of regional (federal) cluster of energetic machine building 9 METODS - Creating conditions for construction of new hi-tech manufactures (priority: complex machine building, energetic machine building) - Creating conditions for comfortable life in the city SOCIAL RESULTS - Positive demography (growing population, incoming migration) - Stable growing city budget - Further development of hi-tech competences of population

10. www.rybinsk.ru INITIATIVES AND PROJECTS OF CITY ADMINISTRATION IN 2011-2015 10 Sport and youth policy Sport involving programs for children International sport competitions New construction and repair of sport and recreation centers Reconstruction of children recreation camps Infrastructure Energetic efficiency programs Heating systems optimization Water distribution system modernization River banks strengthening Repairs of residential buildings Roads construction and repairs Territories and greenery arrangement Education Education system optimization Kindergartens reconstruction School gyms and stadiums repair Modern educational center construction New school food system Healthcare Healthcare infrastructure optimization System of medical specialists support Culture City historical center renovation; Heritage objects reconstruction; Creation of modern information center And others…

11. www.rybinsk.ru 11 RYBINSK: TERRITORY OF INVESTMENTS Eastern Industrial Area NewMcDonald’s Paradigm of development: World level of technology + World level of consumption + Development of social infrastructure = Modern dynamic city Gas turbines Power plants Multi-brandMall Multi-brandMall Instruments Rape Seeds Crystals Cables Jet engines Cluster of energetic machine building University

12. www.rybinsk.ru 12 PROJECTS IN RYBINSK: BASIC ENERGETIC CLUSTER «United Engine Corporation» and «Saturn» with «Safran Group» (Snecma), France Development and production of SaM146 jet engines for regional civil jets. Investment: 552 mln EUR Status: Engines in successful operation in airlines «Saturn Gas Turbines» with «Solar Turbines», USA Development and production of packaged power plants. Investment: 16 mln EUR Status: project in development

13. www.rybinsk.ru 13 NEW PROJECTS IN RYBINSK: ENERGETIC AND CABLE CLUSTERS «United Engine Corporation» and «INTER RAO EES» with «General Electric» Power plants production and testing. New manufacturing plant Investment: 60 mln EUR Status: Land plot purchased, start of construction - 2011 «Prysmian Group», Italy and «Rybinskelectrocable». High voltage cables production. New manufacturing plant. Investment: 26 mln EUR Status: Plant under construction (finish - 2012), start of production - 2013.

14. www.rybinsk.ru 14 NEW PROJECTS IN RYBINSK: NANOTECH «Rosnano» Corporation with «Saturn» and «NIR» («New Instrument Decisions») Production of nano-coated instruments. Investment: 24 mln EUR Status: plant operational since 2010 «Rosnano» Corporation, «Rybinsk Instrument- Making Plant» and «Rybinsk Crystals». Production of industrial sapphires for electronics. Investment: 56 mln EUR Status: small parties manufacture operational, full production lines under construction

15. www.rybinsk.ru 15 PROJECTS IN RYBINSK: INFRASTRUCTURE AND AGRICULTURE «Rybinsk Vodocanal» Complex modernization of Rybinsk water distribution system. Municipal-private partnership. Investment: 72 mln EUR Status: project in development, searching for co-developers «Lyubim Bioraps Company» with «Cobera Capital Group» Rape seeds processing plant with animal and agricultures development. Investment: 19 mln EUR Status: project in development, searching for co- developers and investors

16. www.rybinsk.ru FREE SPACE FOR NEW DEVELOPMENT 16 FOR PUBLIC FACILITIES: 16 plots. Total 147 000 sq. m FOR INDUSTRY: Greenfields 9 plots. Total 255 hectares Brownfield 9 objects. Total 96 000 sq. m FOR LIVING APPARTMENTS: 21 plots. Total 230 000 sq. m

17. www.rybinsk.ru PROSPECTIVE INDUSTRIAL SITE: “EASTERN INDUSTRIAL AREA”  160 hectares – total (city territory), widening up to 400-1500 hectares available  2-20 hectares land lease or purchase available  Municipal (state) property  Plain terrain  Purpose: industrial, scientific companies, communal facilities, warehouses  Infrastructure: water, electricity, gas, communications in proximity  City center – 4 km, river port – 3 km, railroad, automobile road – along the site  Area included in Program of investment areas development (Regional Government) and Program of social- economical development of 2011-2015 (Rybinsk administration)  First resident: JV of “GE”, “Rostechnologii”, “Inter RAO EES” Eastern Industrial Area

18. www.rybinsk.ru FAVORABLE INVESTMENT CONDITIONS Yaroslavl Regional government support of investment activities: 1. Tax privileges for period up to 9 years: 1.1. Wealth tax – 0 1.2. Transport tax – 0 1.3. Profit tax – 4,5 per cent points decreased 2. Investment taxation credits; 3. Yaroslavl regional warranties; 4. Budget credits; 5. Mechanism of government-private partnership 6. Organization and methodology support and other support measures 18 Rybinsk administration support of investment activities: 1. Privilege rent rate for use of municipal property 2. Selection of investment areas according to the requirements of investor, information and consulting support 3. Support of infrastructure issues 4. Fast reception of necessary approvals and permissions 5. Assistance in registration of local company 6. Assistance in HR selection 7. Organization of municipal transport routes to the territory of the company

19. www.rybinsk.ru RYBINSK: CITY OPEN FOR NEW INITIATIVES 19 Multi-branch scientific-industrial potential; Favorable geographical location; water resources; High qualification human resources; Wide multi-level education system and high scientific potential; Perspective investment areas for industrial, residential, public facilities construction; High level of international relations; Stable social and political situation, high activity of population Yaroslavl regional ratings in 2010: 1 st place MunicipalAuthoritiesEfficiency 2 nd place InvestmentActivities

20. www.rybinsk.ru 20 RYBINSK CITY ADMINISTRATION 152900, Russia, Yaroslavl region, Rybinsk, Rabochaya Str., 1 Leonid Mozheiko Leonid Mozheiko - First Deputy Head of City Administration Phone +7 (4855) 29-00-06. E-mail: mozheiko@ryb.adm.yar.ru Julia Dmitrieva Julia Dmitrieva - Head of Economic Development and Investment Office Phone +7 (4855) 29-00-22. E-mail: dmitrieva@ryb.adm.yar.ru Alexey Kuznetsov Alexey Kuznetsov - Head of Strategic Planning and Investment Policy Department Phone +7 (4855) 29-00-14. E-mail: kuznetsov@ryb.adm.yar.ru WE ARE READY FOR PROSPECTIVE COOPERATION! THANK YOU FOR YOUR ATTENTION!